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12. A good system of internal control: A. Urges adherence to prescribed managerial policies B. Insures profitable operations C. Eliminates the need for an audit

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12. A good system of internal control: A. Urges adherence to prescribed managerial policies B. Insures profitable operations C. Eliminates the need for an audit D. Requires the use of non-computerized systems E. Is not necessary if the company uses a computerized system 13. A company's internal control system Eliminates the risk of loss B. Monitors and controls business activities C. Eliminates human error D. Eliminates the need for audits E. Is not necessary in large companies 14. When two clerks share the same cash register, which intermal control principle is violated A. Establish responsibilities B. Maintain adequate records C. Insure assets D. Bond key employees E. Apply technological controls 15. Pre-numbered printed checks are an example of which internal control principle? A. Technological controls B. Maintain adequate records C. Perform regular and independent reviews D. Establish responsibilities E. Divide responsibility for related transactions 16. A credit sale of $2,500 to a customer would result in: A. A debit to the Accounts Receivable account in the general ledger and a debit to the customers account in the accounts receivable ledger B. A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable ledger C. A debit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable ledger D. A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable ledger E. A credit to Sales and a credit to the customer's account in the a accounts receivable ledger 17. Acme Company has an agreement with a major credit card company which calls for cash to be received immediately upon deposit of Acme customers' credit card sales receipts. The credit card company receives 3.5% of card sales which of the following statements is true? A. Acme debits Cash $2,000 . Acme debits Cash $1,930 as its fee. If Acme has $2,000 in credit card sales, Acme debits Accounts Receivable -Credit Card Co $2,000 D. Acme debits Accounts Receivable-Credit Card Co $1,930 E. Acme credits Sales $1,930

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